The Board of Directors of the Company wishes to announce that the Company and its wholly-owned subsidiary, EcoFirst Worldwide Sdn Bhd ("EWSB"), had in the late evening on 5 May 2026, been served with a Writ of Summons and Statement of Claim both dated 20 April 2026 by Modern Peak Sdn Bhd ("Plaintiff").
1. Particulars of the claims under the Writ
Pursuant to the Writ, the Plaintiff has claimed against the Company, EWSB, HCK Estates Sdn Bhd, and HCK Capital Group Berhad (collectively, the "Defendants"), jointly and/or severally:-
(a) A sum of Ringgit Malaysia Seven Million Six Hundred Thousand (RM7,600,000.00) only;
(b) Interest at the rate of eight per centum (8%) per annum on RM7,600,000.00 from 1 April 2026 until the date of full settlement of the said sum;
(c) Cost on a Solicitors and Client Basis; and
(d) Any other orders that the Honourable Court deems fit and reasonable.
2. Details of the circumstances leading to the filing of the Writ of Summons and Statement of Claim against the Company and EWSB
The circumstances leading to the filing of the Writ against the Company and EWSB are as follows:
(a) The Plaintiff alleges that EWSB had breached section 15.04 of the Sale and Purchase Agreement allegedly entered into between the Plaintiff and EWSB on 15 October 2020 ("MP-EFW SPA") by failing to deliver the Plaintiff's units as stated in section 3.02(a)(iv) of the MP-EFW SPA on or before the project completion date as defined in the MP-EFW SPA, which is subsequently agreed as 1 April 2026.
(b) The Plaintiff alleges that the Company had breached the Corporate Guarantee allegedly executed by the Company on 28 December 2020 ("MP-EFB Corporate Guarantee") and the Supplemental Corporate Guarantee allegedly issued by the Company on 4 March 2024 ("Supplemental MP-EFB Corporate Guarantee"). The Plaintiff further alleges that on 2 April 2026, pursuant to clause 1 of the Supplemental MP-EFB Corporate Guarantee, upon demand from the Plaintiff, the Company failed to pay the sum of Ringgit Malaysia Seven Million Six Hundred Thousand (RM7,600,000.00) only to the Plaintiff.
3. Confirmation as to whether EWSB is a major subsidiary
As at the date of this announcement, EWSB is not a major subsidiary of the Company.
4. Financial and Operational Impact of the Writ and Statement of Claim on ECB Group
The estimated potential liability to ECB Group arising from the Writ is stated in item 1 above. At this juncture, the Writ is not expected to have any material financial and operational impacts to ECB Group.
5. Proposed steps to be taken in respect of the Writ
The Company and EWSB have instructed their solicitors to contest the matter to defend their interests.
Further announcement will be made to Bursa Malaysia Securities Berhad as and when there are material developments on the above matter.
This announcement is dated 6 May 2026.